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A Company Receives $100,000 Cash from Investors in Exchange for Stock.Several

Question 48

Multiple Choice

A company receives $100,000 cash from investors in exchange for stock.Several weeks later,the company buys a $250,000 machine using all of the cash from the stock issue and signing a promissory note for the remainder.The accounts involved in these two transactions are:


A) Cash;Equipment;Long-term Investments;and Accounts Payable.
B) Cash;Long-term Investments;Contributed Capital;and Notes Payable.
C) Cash;Equipment;Contributed Capital;and Notes Payable.
D) Equipment;Notes Payable;and Retained Earnings.

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